Collective Bargaining Policy and Practices in Singapore. Presented By: K T Mathew Assistant Director OTC Institute

Transcription

1 Collective Bargaining Policy and Practices in Singapore Presented By: K T Mathew Assistant Director OTC Institute 1

2 Definition & Legal Status of Collective Agreement Definition: A Collective Agreement (CA) is an agreement between an employer and employees and/or their respective organizations which resolves industrial matters. The Industrial Relations Act 2

3 Definition & Legal Status of Collective Agreement Legal Framework Management Submitted within 1 week IAC Union Concluded CA Bilaterally concluded or conciliated settlement Certified CA Certified CA becomes an Award of the Court. Is legally binding on parties to the CA

4 Basis For Collective Bargaining Conditions for effective collective bargaining are ensured by: The Industrial Relations Act; Trade Unions Act; and; the The Employment Act Union recognition by the employer is the starting basis for collective bargaining. 4

5 Union Recognition Procedure for Recognition Same for all types of unions Mandated by law Trade Union must state categories of employees it wishes to represent Employer given 7 days to respond to union s claim Employer can either: Accord direct recognition, or Dispute the union s claim 5

6 Union Recognition Secret Ballot - What Happens Should Employer Dispute Claim? The matter will be referred to the Ministry of Manpower (MOM). The MOM will conduct a secret ballot to determine if a majority of employees in the bargaining unit are members of the union. The recognition ballot is open to all employees of the categories which the union claims to represent The question asked in the ballot is whether the worker is actually a member of the union concerned 6

7 Union Recognition Secret Ballot Union Wins If the secret ballot shows a simple majority of employees (50% +1) are members of the union - compulsory for employer to accord recognition. After recognition, matters that arise settled either by conciliation or arbitration by the IAC. Union Loses If union fails a simple majority - wait for a period of six months to seek representation again. 7

8 Scope of Representation CA contain a clause that stipulates employees covered under the agreement. A union can only take up cases on behalf of its members if dispute arise from the implementation of the CA. CAs generally forbid employer from conferring more favourable benefits for nonunion workers. Migrant workers and contract workers (unless explicitly excluded) can be covered by the CA 8

9 Levels of Collective Bargaining Enterprise Level Bargaining In the private sector - negotiation and signing of CAs are usually done at the enterprise level. Common practice too for industry, occupational and omnibus unions Responsibility Varies Among Unions. In some cases, the union HQ takes the lead. In others, the union s enterprise level unit may take the lead. Common for unions to call general meetings of members to explain terms negotiated and issues covered in a new CA. 9

10 Levels of Collective Bargaining Supra-Enterprise Bargaining in the Private Sector No legislative or institutional impediments against supra-enterprise level (multi-employer) bargaining although it is rare in the private sector. One exception is the banking industry.here, industry unions meet several major employers and negotiate broad framework on wages and bonuses. The unions will then continue discussions with individual companies to take into consideration their respective situations. CAs are then signed and implemented at the enterprise level. Also practiced in the insurance, stevedoring, and shipping industries (foreign owned ships). 10

11 Levels of Collective Bargaining Supra-Enterprise Bargaining in the Public Sector Annual wage increments and bonuses are discussed with representatives of the Government. Statutory Boards do engage in negotiations, and collective agreements are signed separately for each Statutory Board. 11

12 Tripartite Influence on Collective Bargaining Apex workers & employers organizations play a role in collective bargaining. The SNTUC and SNEF are members of the NWC, a tripartite body which provides broad guidelines on wage-related issues. Although its decisions and guidelines are not mandatory, the NWC influence bargaining patterns. When cases are submitted for conciliation, NWC s recommendations are considered. 12

13 Matters For Collective Bargaining Framework Defined By Law The Industrial Relations Act (IR Act) provides the legal framework for collective bargaining, and dispute settlement. Section 18 of the IR Act enables a trade union or employer to serve notice to invite the other party to negotiate on industrial matters. Industrial matters is defined by the Act as matters pertaining to the relations of employers and employees which are connected with the employment or non-employment; or the terms of employment, the transfer of employment or the conditions of work of any person. 13

14 Matters For Collective Bargaining Two Broad Categories Contents of bargaining fall within two broad categories: matters relating to salary; and conditions of employment. Matters relating to wages and salary include the salary range (minimum and maximum), annual increments, bonuses, allowances and other benefits (financial and nonfinancial). Matters relating to conditions of employment include annual leave, medical benefits, overtime, rest days amongst other things. 14

15 Matters For Collective Bargaining Non-Negotiable Matters The IR Act defines matters such as promotion, transfer, hiring, retrenchment, dismissal and assignment of duties as being nonnegotiable. Unions have recourse for cases of wrongful dismissal under the Act. Unions can refer cases to MOM for conciliation for cases of victimization or discrimination in a transfer of employment. 15

16 Matters For Collective Bargaining Collective Bargaining Well Defined By Law Collective bargaining has remained clearly defined by the law in Singapore. No instances of any issues which have been recently contested as valid subject matters for collective bargaining. There are, however, issues which have concerned unions and employers and have been discussed at the national level. 16

17 Duty To Negotiate Invitation to Negotiate The employer or trade union must respond to the invitation to negotiate within 7 days. Failure to Respond Failure to respond would enable the inviting party to notify the Commissioner for Labour under section 20 of the IR Act. The Commissioner will subsequently attempt to persuade the employer or trade union concerned to negotiate. 17

18 Failure To Negotiate Consequences of Failure to Negotiate If the employer or trade union refuses to negotiate, the Commissioner shall notify the MOM that there is a trade dispute. The Commissioner will also inform the Registrar of the IAC of the dispute. It is rare that an employer or a trade union will actually refuse to accept an invitation to engage in collective bargaining 18

19 Conciliation Deadlock to Conciliation After 14 days from the date of notice of invitation, if the union and employer are not able to reach an agreement or settlement, either party may notify the Commissioner of the deadlock. The Commissioner will then conciliate the dispute in order to bring about a settlement. The referral to conciliation will prevent any of the parties from engaging in industrial action. 19

20 Conciliation Conciliation to Compulsory Conference If after 7 days of conciliation, the Commissioner is of the opinion that negotiations and conciliation will not yield an agreement, he/she may notify the Minister and the Registrar that a trade dispute exists. At this stage, the Minister may consider that further conciliation is necessary and may call a compulsory conference of the disputing parties. 20

21 Arbitration Unilateral vs. Joint Application While the dispute is being conciliated at the MOM, the parties may refer the matter to arbitration prior to the Commissioner declaring a deadlock. The union or employer may refer a matter unilaterally to the IAC, only if the matter relates to annual wage supplement, variable payment and wages. A joint application by the union and employer is needed for all matters in dispute. 21

22 Dispute Resolution Over The Years No. of Strikes Unionised Disputes referred to MOM No. of cases referred to IAC

23 Industrial Action Taking Industrial Action All Singaporean workers have the right to strike except those in the three essential services of water, gas, and electricity,. Industrial action may be taken only for furthering the respective party s interest in a labour dispute. Hence, sympathy strike is not permitted. Industrial action may be taken when a majority of affected union members have voted, through secret ballot, in favour of taking industrial action. 23

24 Registering the CA By Unions/Employer Amend CA By IAC New CA No Prepare CA Submit CA IAC Review Yes CA Certified Expiring CA CA Gazetted

25 Extension of the CA. Extension of CA The CA shall cease to be in force once it reaches the expiry date as stipulated in the agreement. However, the court has the power to order the continued operation of a CA past its expiry date on application by a trade union or any other person bound by the agreement under certain situations

26 Non-Certification of CAs by IAC Grounds for Non-Certification The IAC may refuse to certify a CA if it finds: It is contrary to public interest. If it not comply with the standards established by the IR Act. If the terms are in violation of the law. 26

27 Variation of CA Filing for Variation If either party wants to change the terms of the CA, they are required to jointly apply to the Court for a variation order. Normally, a variation order would be handed down within 2 weeks from the date of filing an application 27

28 Bargaining Agents/Parties to the CA Who are Involved Employer and the trade union representatives. A representative from senior management of the company an external consultant, such as from SNEF On the union side, the negotiating team is led by the Union s General Secretary, the Branch leaders or an industrial relations officer. Larger unions likely to have the resources for professional industrial relations 28

29 Parties Perception of Collective Bargaining Union & Management Perspectives Unions have taken a coordinated position to include training clauses in collective agreements, and more recently, clauses on wage reform and the re-employment of older workers. Employers are generally accepting of collective bargaining at the enterprises. 29

30 Collective Bargaining in the Public Sector The Public Sector The public sector comprises of government ministries, departments and statutory bodies. The main public sector unions include: The Amalgamated Union of Public Employees (AUPE); The Amalgamated Union of Statutory Board Employees (AUSBE) which represents 12 statutory boards; The Amalgamated Union of Public Daily Rated Workers Union (AUPDRWU); Four Teachers unions; and; Other smaller unions 30

31 Collective Bargaining in the Public Sector Public Sector - What s Different Position of Government and Statutory Board employees obtained by notification in the Government Gazette. Public sector employee eligible to be represented in collective bargaining is determined by the Government. The AUPE and AUPDRWU have entered into several CAs with the Government covering such employees.

32 Collective Bargaining in the Public Sector Public Sector - What s Different (cont d) The Minister for Finance is deemed to be the employer of all Government employees. The Public Services Division of the Government provides the HRM framework. The PSD continues to play a key role in collective bargaining and industrial relations.

33 Questions? 33